Pension Credit claims have risen 44 per cent in the past year, with 98,200 more applications totalling 320,300.
The increase follows the government’s decision to restrict the Winter Fuel Payment to those receiving Pension Credit.
Data from the Department for Work and Pensions (DWP) show that 181,100 claims were approved in the year since the change, 57,200 more than the previous year, a 46 per cent increase.
Broadstone head of policy David Brooks says: “It is great news over 57,000 more pensioners entitled to Pension Credit are now receiving this important financial benefit to support their retirement incomes.
“Pension Credit is explicitly targeted at lower income pensioners but hundreds of thousands of eligible retired households are still not claiming this benefit. While the Government’s policy on Winter Fuel Payments has grown awareness of this issue and increased take up of Pension Credit significantly, the rise of claimants in the past year still does not get near to closing the gap sufficiently.
“We would urge all pensioners to check whether they are eligible for Pension Credit as we head towards another winter that appears likely to be dominated by the cost of living, the adequacy of the State Pension and further tax rises.”
Just Group group communications director at retirement specialist Stephen Lowe says: “The take up of Pension Credit has been subject to a harsh spotlight since the Government first limited the Winter Fuel Payments to people who are in receipt of Pension Credit or certain other means-tested benefits.
“There has clearly been a significant boost in Pension Credit take up with nearly 100,000 more applications annually following the Winter Fuel Payment announcement, with over 57,000 of those claims awarded. This will be seen as a notable success in bolstering long-term take up a crucial benefit targeted at lower income pensioners.
“However, it remains a drop in the context of the estimated 700,000 families that are eligible for Pension Credit and not claiming it. These people may be failing to claim for a number of reasons – they may simply be unaware of the benefit, not know how to claim or assume they are not eligible if they own their own home. Just Group’s research conducted this year among people aged over 66 found that four in 10 (40 per cent ) homeowners and one in seven (15 per cent ) of renters had never checked their benefit entitlement.
“If you think you, or a member of your family, may be entitled to Pension Credit there are a range of free resources to help check eligibility. The government website has links to useful third-party calculators (https://www.gov.uk/benefits-calculators) while other good sources are Citizens Advice, local councils and charities.”
PensionBee chief business officer UK Lisa Picardo says: “Today’s figures show that despite the expansion of the Winter Fuel Payment last summer delivering a clear boost to Pension Credit claims, momentum is already fading, with new claims down 16 per cent so far compared to the equivalent period last year.
“With around 700,000 eligible pensioner households still missing out on support worth up to £4,000 a year according to the Work and Pensions Committee, the scale of the challenge is undeniable. Pension Credit is not only vital extra income for some of the most vulnerable older people, it is also a gateway to further help such as cost of living payments and winter fuel payments.
“Low take-up rates, which have hovered between 61 per cent and 66 per cent for over a decade according to the government’s own data, underline how urgently we need clearer communication, simpler claims processes and a joined-up national strategy to ensure every eligible household receives what they are entitled to. No one should face pensioner poverty because of an administrative barrier or lack of awareness”.